McKesson stock price target raised to $864 from $830 at TD Cowen

Investing.com - TD Cowen has raised its price target on McKesson (NYSE:MCK) to $864.00 from $830.00 while maintaining a Buy rating on the healthcare services company. The stock, currently trading at $764.19 with a market capitalization of $95.22 billion, is trading near its 52-week high. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.

The price target increase follows McKesson’s recent Investor Day, where the company raised its long-term adjusted earnings per share guidance and set higher targets for its combined North America Pharmaceutical and Oncology/multispecialty adjusted operating income. InvestingPro data shows the company has demonstrated strong financial health, earning an overall score of "GREAT," with particularly robust price momentum metrics.

TD Cowen noted that recent developments regarding biosimilar interchangeability are not factored into McKesson’s guidance, suggesting potential upside beyond current projections.

The new price target is based on TD Cowen’s discounted cash flow analysis, which implies McKesson shares can trade at approximately 20 times the firm’s calendar year 2026 adjusted earnings per share estimate of $42.4.

McKesson provides pharmaceutical distribution services and healthcare technology solutions across North America and internationally.

In other recent news, McKesson Corporation has announced a reorganization of its reportable segments, which will take effect in the second quarter of fiscal year 2026. This restructuring aims to improve strategic alignment and transparency, dividing the company into five segments, including North American Pharmaceutical and Oncology and Multispecialty. Additionally, McKesson’s stock price targets have been adjusted by several financial firms. UBS has raised its price target to $860, citing strong cash flow conversion and strategic growth plans. Mizuho increased its target to $770, noting management’s raised long-term EPS growth guidance. Leerink Partners also raised its target to $850, highlighting better-than-expected growth in pharmaceutical segments. Conversely, Jefferies lowered its target to $84, pointing to tariff and geopolitical pressures, although it maintained a Buy rating. These developments reflect a dynamic period for McKesson, marked by strategic changes and varying analyst perspectives.

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